Fiduciary Fears Slow Advice Offerings

Cost (33%) and concern about advice providers’
objectivity (30%) were also cited.

Web Way

While the number of plans offering investment advice has
risen only slightly, more than half of those are now using
the Internet to do so, according to preliminary results
from the BARRA RogersCasey/IOMA Annual Defined Contribution
Survey 2000.

While only 24% of DC plans currently offer investment
advice, the number doing so online has more than doubled,
with 51% now using the Internet as a delivery medium.
A year ago, 22% of plans offered advice, with just 26%
doing so over the Internet.

On Their Mind

The survey also found that 33% of sponsor respondents
are considering offering investment advice. Among
those plans with less than 250 participants, plans were
even more likely to offer advice, with 34% now offering the
service and 17% considering it.